Commercial umbrella insurance is designed to provide an additional layer of liability protection over certain underlying policies. It doesn’t replace your primary coverage; it responds when covered claims exceed those limits.

Risman Insurance Agencies helps Massachusetts businesses understand how commercial umbrella insurance fits into their overall risk management plan and which limits may be appropriate for their operations.

Insurance coverage cannot be added, deleted or changed until confirmed in writing from our office.

How a Commercial Umbrella Policy Works

A commercial umbrella policy is designed to:

• Sit above certain underlying liability policies (general liability, commercial auto liability, employers liability)
• Respond when a covered claim exceeds the underlying policy’s limit
• Provide additional protection, such as $1 million, $2 million, or higher (depending on carrier options)

Umbrella policies may have exclusions or conditions, so reviewing how your underlying policies interact with the umbrella is important.

What a Commercial Umbrella May Cover

General Liability

• Slip-and-fall injuries
• Damage to a customer’s property
• Certain products and completed operations claims

Commercial Auto Liability

• At-fault accidents involving serious injury
• Multi-vehicle accidents with large medical or property costs

Employers Liability (part of many workers’ comp policies)

• Certain suits brought by employees outside the standard workers’ compensation system, where eligible

Your specific coverage depends on both your umbrella policy and the underlying policies it sits on top of.

Why Businesses Consider a Commercial Umbrella

Businesses often explore umbrella coverage when they:

• Work on larger or higher-exposure jobs
• Have contracts requiring higher liability limits
• Operate vehicles or a fleet
• Serve the public or high foot-traffic environments
• Want to better protect business assets from catastrophic claims

An umbrella is often a cost-effective way to increase overall liability protection across multiple policies.

Contract and Project Requirements

Many commercial contracts require higher liability limits and may specifically mention umbrella coverage. Examples include:

• “Contractor shall maintain $1,000,000 per occurrence with a $5,000,000 umbrella.”
• “Vendor to provide combined limits of $2,000,000 through primary and excess coverage.”

We can help you understand which requirements relate to your insurance policies (not legal advice) and coordinate certificates for clients, general contractors, landlords, or municipalities.

Common Questions About Commercial Umbrella Insurance

“Is umbrella the same as excess liability?”

Not always. Umbrella and excess policies can work differently. An umbrella may provide broader protection in certain cases (varies by carrier), while an excess liability policy generally follows the underlying policy more strictly.

“Will an umbrella fix gaps in my primary policies?”

Not necessarily. If something is excluded in the underlying policy, the umbrella may not cover it either. It’s important to address gaps at the primary-policy level.

“How much umbrella coverage do I need?”

It depends on your operation size, exposure level, contract requirements, vehicle use, and overall risk tolerance. We help businesses compare options and consider appropriate limits.

Massachusetts Considerations

While we do not provide legal or tax advice, Massachusetts businesses should consider:

• Liability verdicts and settlements can be significant
• Commercial auto claims can escalate quickly
• Contracts often require higher liability limits

A commercial umbrella can help address these realities as part of a comprehensive insurance program.

Why Businesses Choose Risman Insurance Agencies

As an independent agency in Medford, MA, we can:

• Access multiple carriers offering umbrella and excess liability options
• Coordinate umbrella coverage with your general liability, auto, and workers’ comp policies
• Review contracts and highlight insurance-related requirements
• Adjust your coverage as your business grows

Our goal is to help you balance cost and protection while preparing for high-severity claims.